Adopting the government of India’s Model Tenancy Act 2021, theGujaratgovernment plans to introduce a new tenancy act for the state to replace the Bombay (now Gujarat) Rents, Hotel andLodging House Rates Control Act, 1947.
Although the new act will be structured to ensure impartiality to both owners and tenants of properties, the new act is expected to shield property owners from unwarranted harassment by tenants.
The new law is expected to facilitate the Growth ofrented propertiesin the state. The existing laws give less protection to owners, who are apprehensive of renting out properties as they fear harassment by tenants who do not vacate the premises.
The new act will have a provision to establish a state-level authority to regulate the rented property market.
The model tenancy act makes it mandatory for the landlord and tenant to sign a written agreement which specifies the rent, period of tenancy and other related terms. The will establish a body on the lines ofRERA(Real Estate Regulation Authority) to regulate all rented property transactions.